Port of Oakland - Newsroom

Port Commissioners Approve Execution Of Exclusive Negotiating Agreement For Oak To Ninth District Waterfront Development
Port of Oakland's Board approves execution of Exclusive Negotiating Agreement with Oakland Harbor Partners, LLC

OAKLAND, Calif. (December 18, 2001) -- Port of Oakland's Board of Commissioners voted today to execute the Exclusive Negotiating Agreement with Oakland Harbor Partners, LLC (Signature Properties, Reynolds and Brown and Bay Area Smart Growth Fund I) covering the Specific Plan and Master Development for the Port's Oak to Ninth District 60-acre parcel.

"Moving forward with Oakland Harbor Partners signifies a promise of great things to come," stated Tay Yoshitani, the Port's Executive Director. "The execution of this agreement puts us on track toward development of a first-class project on Oakland's prime waterfront property."

The 60-acre parcel is centrally located on the Oakland Estuary minutes from vibrant Jack London Square and downtown Oakland. It is in the Oak-to-Ninth District, which encompasses about 120 acres of land. Approximately 75 percent of the district is under Port ownership. The area is presently characterized by warehousing, manufacturing, an artists' community, distribution, storage and transportation.

On March 14, 2001, the Port made public the invitation for highly qualified developers to submit information of their ability to partner in a Specific Plan process and to design and develop a first-class mixed-use project on Oakland's largest remaining waterfront development site. "We were very pleased with the pool of applicants for this significant high-profile project," said Omar Benjamin, the Port's Director of Commercial Real Estate.

An October 2001 California State Audit determined that the Port of Oakland effectively managed its assets over the last 10 fiscal years and should remain financially competitive in the future.

While the Aviation and Maritime divisions have been profitable, the state auditor had recommendations for the Port of Oakland's commercial real estate division to improve its bottom line.

To reduce the effect of losses on the Port's overall operations, the state auditor recommended that the real estate division should take the following actions:

Complete the action plan approved by the board in 1999.
Continue to look for ways to increase revenues and decrease costs associated with managing its assets.

Execution and implementation of the 1999 Restructure & Development Plan is well under way. All elements of the Plan are being aggressively executed.

Restructuring the Port's commercial real estate holdings was designed to improve the bottom line profitability of the Port as well as to allow for greater focus on its main lines of business - its seaport and Oakland International Airport.

The Board-approved master development plan for the Port of Oakland's Oak to Ninth District 60-acre parcel is part of the Port's long-range plan developed three years ago to stem prior losses from its real estate holdings of waterfront land.

With regard to today's Board action, President of the Board of Port Commissioners Phil Tagami noted, "This team has tremendous experience with major projects and a proven commitment to the City of Oakland. The Port's competitive, open and public process has resulted in finding a very successful master developer, Oakland Harbor Partners. Their plan will incorporate the goal of creating a waterfront that meets the needs of Oaklanders and the entire region."

The Oak to Ninth development presents an extraordinary opportunity to transform underused land into a thriving urban area. This development has a potential value in excess of $500 million and allows for greater public access to the waterfront.

Oakland Harbor Partners, LLC includes Signature Properties, Reynolds and Brown and Bay Area Smart Growth Fund I. Signature Properties is a privately held California corporation dedicated to the development of high quality mixed-use projects, master planned communities, new home neighborhoods and commercial/retail properties. Since its founding in 1983, Signature Properties has constructed more than 5,000 condominium and single-family residences throughout the greater Bay Area and Sacramento area, as well as the development of over 1 million square feet of office and retail properties.

Reynolds and Brown has developed more than 8 million square feet of commercial real estate. It has established an impressive history of success in development of real estate throughout the San Francisco Bay Area since its founding in 1963. The Reynolds and Brown portfolio includes a diverse balance of retail centers, business parks, research and development parks, mid-rise office buildings, entertainment and recreational complexes, warehouse and distribution facilities and residential properties.

Bay Area Smart Growth Fund I invests in mixed-use, mixed-income commercial, industrial and housing developments. Private investment managers with strong track records manage the funds. The investors in the funds include banks, institutional investors and other corporations.


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